7 January 2008

Starting the new year with an unhealthy debit balance on your credit card can be a financial burden that we don't really need after having a merry Christmas with our family.

Unfortunately, not everyone has an abundance of cash on hand during the holiday season and a credit card can be a good financial tool to bail you out of a tight squeeze to ensure you make it through without having to face any financial hardships.

A balance transfer credit card is one option available to everyone to ensure that you don't experience any financial hardship later.

The banks are keen to gain your business and one way they try to promote themselves to us is through low or zero interest credit card balance transfers.

What this means is that you can transfer your existing credit card debt to a new credit card account with them.

And as a sign of your good faith in bringing your business to the new bank, they will reward you by charging either a zero percent interest rate or a low interest rate for a period of time.

Make sure that you understand the nature of the account that you are signing up for. Not every credit card will give you a zero interest rate charge.

The credit card products offered by the financial institutions vary. Some credit cards will offer you a zero interest rate for the entire term of your debit balance while others can offer you a low interest rate for a period of 6 months.

If you want to transfer your credit card account make sure that you understand exactly what it is that you are applying for.

While getting your credit card balance down to a manageable level is one aspect of our financial lives we all want to keep on top of, we should also pay attention to the security of our accounts.

When using your credit card at stores

- Keep an eye on your credit card when you hand it over the counter. Make sure that it isn't being swiped.
- Cover up from preying eyes when typing in your pin number.
- Make sure you leave with your receipt and don't be scared to ask what do they do with theirs. People do go through rubbish to findcredit card details. Ask if they shred the paperwork after they have held it for a while or do they just put it out with the trash for anyone to find.

Using the Internet

The internet has made our lives a lot easier with bill payments and purchases saving us time and money.

You can pay for things such as car registrations, gas, electricity via Bpay or you can use your credit card.

The ability to buy items online is a great way to save money but we do have to keep our computers safe.

The banks are spending millions each year on security and we can help them out by taking some reasonable measures.

- Keep your anti virus software up to date.
- Never visit your bank web site via a link in an email.
- Never reply to a "bank email" quoting passwords and account numbers. Your bank will NEVER ask you for these details in an email.

- If you feel that the email is a legitimate email from your bank asking for your personal details then you should pick up the phone and call them to discuss the email person to person.

Even a simple padlock for your letterbox can save you being inconvenienced by credit card fraud.

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